Is The Media Really to Blame for Housing Boom and Bust?

Former BBC reporter Evan Davis has admitted that the media may be to blame for fostering the boom and bust of the UK housing market. Media to blame

Davis says that one factor which may have contributed to an unsustainable boom  was the way the BBC reported on every house price survey which showed rising house prices. The effect, he says was to create a powerful wave of optimism about the housing market, which was unjustified.

Davis said, he began giving warning about the housing boom as early as 2002.

However, as commendable as the statement of Davis is, can the media be really blamed for stocking up a housing boom?

• It is true people want to hear good news; it is also true, that house price statistics can be misleading. But prices were mainly rising because of market conditions. To blame the media is to give them far more influence than they actually had. It was not the media who were offering a range of mortgages, low interest rates and a shortage of supply.
• If the media exaggerated the boom in house prices, you could also equally argue they are exaggerating the ‘collapse’ in house prices. As Davis notes, he began warning that house prices could go down as well as up. But, It is worth remembering, despite recent falls, house prices are still £79,158 higher than in the start of 2002 (that is an 85% increase) source: Historical house price index